Character.AI files for Chapter 11 bankruptcy

Character.AI, once valued at over $1 billion, has filed for Chapter 11 bankruptcy. The startup was losing tens of millions of dollars a month on computing costs while ad and subscription revenue peaked at just $5.3 million per month, and wrongful death lawsuits over minors were settled earlier this year.

• Character.AI filed for Chapter 11 bankruptcy protection
• Ad and subscription revenue peaked at just $5.3 million per month
• Computing costs ran to tens of millions of dollars per month
• Wrongful death lawsuits over minors were settled earlier this year